Summertime can be a great time for cutting taxes.
Consider these possibilities:
* If you and your spouse work, the cost of sending your
children to a summer day camp may qualify for the
child care credit.
* Mix business and pleasure in your summer travels, and
take a tax deduction for the business portion of the
cost. That may include your lodging, meals (50%),
transportation, and incidentals such as tips.
* Consider hiring your children to help out in your
business for the summer. The wages you pay them are
deductible to your business and taxable to the
children in their (presumably lower) tax brackets.
Wages must be reasonable for the actual work performed.
If your business is an unincorporated family business,
you won't pay social security tax on wages paid to
your children under age 18.
* Summer is a good time to do business entertaining. Be
sure you keep complete records of the cost, the date,
who was entertained, and what the business purpose was.
Your deduction is limited to 50% of the cost.
For more options that could cut your 2008 tax bill
while you enjoy your summer, give us a call.
Happy Summer!
Howell & Sullivan PLLC
(828) 654-6226